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PBOC Sets RMB300B Overnight Reverse Repo Rate at 1.25%, Below Policy Rate, Seen as De Facto Rate Cut: Report
2026-06-29 15:14:53
The People's Bank of China (PBOC) announced that it conducted RMB300 billion of overnight reverse repo operations today (29th), but did not disclose the specific interest rate.

The PBOC introduced a new open market instrument, the "overnight reverse repo operation rate", with the winning rate set at 1.25%, 15 bps below the policy rate and lower than market expectations, foreign media reported, citing sources.

The move was interpreted by the market as a de facto rate cut and was expected to further reduce market financing costs.
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